Bad Weather Adds to Gloom Surrounding U.K. Economy

U.K. finance minister George Osborne could be forgiven for casting a rueful glance skyward. Already buffeted by economic storms from across the English Channel, it now appears possible the U.K. economy could labor this summer under an altogether more familiar cloud: the weather.

U.K. shoppers are notoriously sensitive to the elements, and hopes for a consumer splurge to lead the economy out of recession have taken a soaking as floods race through many parts of the country and temperatures plunge to unseasonable lows.

Associated Press

Retailers are bracing for a poor summer, and prolonged downpours will add to the risk that two consecutive quarters of falling output turn into three, or even four.

The Met Office, the U.K.’s official weather service, has in recent weeks been busily issuing color-coded severe weather warnings to various British regions menaced by floods. Met Office 30-day forecasts, while inherently uncertain, point to further “unsettled” conditions ahead, a euphemism Britons know all too well that usually stands for torrential rain and howling winds.

Such unsettled conditions were evident during Queen Elizabeth II’s diamond jubilee in early June. Even if Britons’ patriotic ardor was undimmed, expectations of bumper high street sales over a four-day holiday were quashed by the cold snap and near-constant drizzle that descended on much of the country as the celebrations got under way.

Data from the Office for National Statistics shows just how vulnerable retail sales can be to swings in the weather. April this year was the wettest on record, and the volume of retail sales sank 2.3% from March, the biggest month-on-month drop in two years. Retailers blamed the rain for a collapse in auto fuel sales and consumers’ lack of appetite for new summer clothing ranges.